Japanese Market Development

• Sequis initiated a seminar for Japanese companies about “Japan’s economic prospects and welfare systemin Indonesia”
• Sequis strengthen its insurance business for Japanese companies in Indonesia
• This is the first event for Japanese companies after Nippon Life , the largest private Japanese insurer, invested in Sequis Life in October 2014

Jakarta – 29 May 2015, PT A. J. Sequis Life initiated a seminar for Japanese companies about “Japan’s Economic Prospects and Welfare System in Indonesia” presenting two speakers, Koichi Haji, Executive Research Fellow from NLI Research Institute explored the discussion about The Abenomics Effect and Japan’s Economic Prospects and Aldi Rinaldi, Sales Director Sequis Financial with the presentation topic of Welfare System in Indonesia.  The event was attended by approximately 100 representatives of Japanese companies in Jakarta (Indonesia).

Tatang Widjaja, President Director & CEO, Sequis explained, “Sequis always tries to provide better service to corporate customers as well as individual customers. In order to do so, Sequis carries out business expansion in various areas, and one of them is to strengthen insurance business for Japanese companies in Indonesia by providing business and employee welfare services.”

Tatang acknowledged that with the increasing numbers of Japanese corporates starting businessin Indonesia, he is very confident that Sequis and Nippon Life can provide better service for Japanese corporates by sharing the best practice in employee benefit business area.

In Koichi Haji’s presentation mentioned that the Abenomics has three arrows; aggressive monetary policy, flexible fiscal policy and economic growth strategy through stimulating private investment. These 3 policies are aiming to overcome deflation and realize sustainable growth in Japanese economy. However, he mentioned that there are some challenges in Japanese economy that Japan has to overcome shortage of manpower, build a society which people can work until 70 to reduce social security cost and enhance productivity of corporates.

In his presentation, Aldi Rinaldi explained that the employee welfare in Indonesia, especially in pension, is in the lowest position level with the index value of 35 – 50. It means that Indonesia already has certain welfare system features but still needs to be improved. The positive progress will impact the insurance business productivity in Indonesia especially for the life and health insurance to provide other welfare products to complement the existing mandatory programs.

“We noticed Indonesian life and health insurance market has been growing robustly against the backdrop of the fourth largest population in the world of around 250 million and a growing middle class population. This high growth is expected to continue in light of the lower life insurance penetration in Indonesia relative to those of developed nations. In order to accelerate this growth of the market, it is our mission to provide better services to customers from both individual and group insurance point of view. “said Yutaka Uozumi, Director of Strategic Alliances and Technical Support, Sequis (expat from Nippon Life)

 “We also see that Indonesia is a strong country to withstand the global economic turmoil. This can be seen from  previous economic crisis in which Indonesia has survived and was able to turn the economic growth rate around despite a minor setback in the firstquarter of 2015. Related to Sequis medium-term plan Vision 2020: To Be THE Leading Life & Health Insurer in Indonesia, where Sequis has expanded its agent workforce, diversified distribution channels and new product development tailored with customers’ needs, we continue to be optimistic in choosing Indonesia and Sequis as our investment option seeing its rapid market growth in the future, “added Uozumi.

Tatang also said a similar statement, “Indonesia’s economic resilience is supported by the increasing number and competitiveness of SME’s (Small Medium Enterprises), especially in the second tier cities that is growing into a business hub, commerce/trading, industry and education, “he added.

“We are optimistic to strengthen the position and business capabilities in Indonesia and to target  existing international companies from Japan, implemented through programs that will be tailored to the needs of the Japanese companies in Indonesia “, said Tatang again. 

New Paradigm of Group Insurance

The health insurance mandatory program organized by the government through Badan Penyelenggara Jaminan Sosial (BPJS) certainly has influenced the group insurance industry in Indonesia.

 “We acknowledge that this regulation affects the productivity and income for the group insurance, but it should not be an obstacle for us to provide protection for the employees, “said Tatang. BPJS provides basic protections. Sequis, as one of the most reliable insurance companies in Indonesia will cover additional needs that are not included in BPJS. “We believe that this is agreat opportunity, because in Japan, private insurance companies such as Nippon Life itself provides health protection as the complementary program to be tailored with government’s program“, added Uozumi.

Positive Financial Performance

PT A. J. Sequis Life reported its positive performance during 2014. The net premium income amounted to 2.394 trillion, increased 13% from the previous year 2.117 trillion. Total assets continues to be developed up to 15.258 trillion, increased by 66% from the previous year, 9.187 trillion.  The positive movement in financial performance resulted the Risk Based Capital (RBC) to become 1500%, increased by 134% from the previous year, 642%.

PT A. J. Sequis Financial also recorded its positive performance with the increase of Net Premium Income, amounted to 32.004 billion, increased by 25% from the previous year, 25.663. The Total Assets increased by 5% to 462.245 billion from the previous year, 439.377 billion.

PT A. J. Sequis Life recorded payment of claim of Rp.2.935 trillion and its subsidiary, PT A. J. Sequis Financial, recorded Rp.34.954 billion.

Additional Information

1. Sequis & Nippon Life

In 2014, Nippon Life has invested in Sequis Life, so that Nippon Life owns 20% of Sequis Life’s Shares.The purpose of this investments to expand business in Indonesia by strengthening Sequis’s positioning and business capability, as well as open the opportunity for both institutions to share knowledge about the best practices in insurance business.

This investment will not affect and change the policies owned by customers including the benefit, Terms & Conditions, and customers’ policy number. This also will not affect the logo, brand’s name, subsidiary, product, company’s management as well as the agency system.

2. Sequis Financial

After the sequential transformation in 2013, Sequislife has been growing rapidly, becoming a part of Indonesia’s daily life and consistently reinforcing its presence as one of the largest insurance companies in Indonesia. In 2005, Sequislife acquired a multinational company, Met Life Indonesia and changed the name to Sequis Financial. Recently, Sequis Financial received award as the best insurance company in 2015 from Media Asuransi.

Sequis Financial is the subsidiary of Sequislife that is focusing on Alternative Distribution Channel which includes Employee Benefit Business, Bancassurance, and Telemarketing.

1. Employee Benefit

Employee benefit or group insurance offers products that are customized to the needs of the company. Sequis Financial has served more than 120 well-known companies in Indonesia ranging from multinational, large and mid-size private national corporations dan SME’s

2. Partnership Distribution

A partnership between insurance companies and banks by combining banking service products and insurance products offering protection through bank’s distribution channel. Sequis Financial collaborated with major state owned and Joint Venture as well as large and mid-size of private national banks

3. Telemarketing

Sequis Financial cooperated with major state owned and Joint Venture as well as large and mid-size of private national banks to offer health, education, critical illness and life protection product as well as life protection for credit card holders

3. Nippon Life

Nippon Life is one of the biggest insurance companies in Japan, founded on July 1889 as Nippon Life Assurance Co., Inc. and in 1891, the company changed the name to Nippon Life Assurance Co., Ltd.. After World War II, Nippon Life changed into Nippon Life Insurance Company in 1947. In the present day, 125 years after it has been founded, Nippon Life continues to work to achieve well-organized prosperity.

Nippon Life provides individual insurance, group insurance and annuity policies through various distribution channels. Nippon Life has total assets of JP¥ 61,363 billion (approximately, 511 billion USD), on December 31, 2014. Nippon Life has nationwide network of approximately 50,000 named Nissay Total Partners (sales representatives) in its 104 branches nationwide, provides direct support services to meet the needs of the customers throughout Japan. Nippon Life offers a broad range of products and consulting services to match the needs of corporate managers and company owners who are working to enhance benefit plans for employees in Japan that they have more than 210,000 corporate customers.

To support its overseas business development, Nippon Life strengthen its business direction by investing in several Asian countries; Thailand in 1997, China in 2003 and India in 2011, recently has invested in Sequis Life. The background of the investment is that Nippon Life noticed that the life and health insurance market has been growing robustly in Indonesia as well as the middle class population. Nippon Life and Sequis aim to contribute by sharing experience and knowledge in various areas of insurance.